Part 1: USDA Grants for Farm Marketing
Every year the USDA provides millions in grants to support local and regional agriculture. The goal is to increase access and availability to local food across the country.
You may be surprised to learn that there are even grants available for supporting your marketing needs. You may not have room in the budget for either learning how to market your farm and products, or for paying someone else to help you with it. Which is why the USDA grants are a great opportunity to help you reach more customers, while not having to stress about the money side of it.
In this post you’ll find the basic information on how USDA grants work and the specific grants available that fund marketing needs. We hope you stick around for our second post, that gives you examples of farms who received a USDA grant. You’ll also find links to other resources that provide further information and opportunities for consulting.
Applying for a grant may sound daunting, but it doesn’t have to be. We’re here to help demystify the process!
How Grants Work
Although the grants available each year mostly stay consistent, the details change on how much overall funding is available, when applications are due, and what the requirements are to apply. Keep an eye on the VAPG page towards the end of the calendar year for when the USDA announces its annual grants.
Once the details are made public, you have a time window for gathering together everything required to apply. Deadlines vary for each grant, so it’s helpful to know which specific grant fits your marketing needs best before you start creating a plan of action. Luckily we’ve got the basics to get you started. Keep reading to find out which grants can help with marketing your farm and products!
USDA Grants that Help with Farm Marketing
There are two USDA grants available that allocate funding for marketing efforts: the Value Added Producer Grant and the Farmer’s Market Promotion Program.
Value Added Producer Grant
The goal of the Value Added Producer Grant (VAPG) is to generate new products, create and expand marketing opportunities, and increase producer income. It’s open to a variety of producers and groups, such as independent producers, agricultural producer groups, farmer- or rancher-cooperatives, and majority-controlled producer-based business ventures. The most important thing to note is that the applicant must produce agricultural products and maintain ownership of these products from production through processing and sales to end users.
Also, there are a variety of categories that your products can be eligible under. You may be surprised to learn that “locally-produced agricultural food products'', or produce sold within 400 miles of where it’s grown, is an eligible VAPG category. Also, certified organic fruits and vegetables and eggs from free-range chickens fall into another eligible category. So even if you don’t produce what’s typically considered a “value-added product”, like cheese or jam, you may still qualify for a VAPG.
It is also important to know that the VAPG is a reimbursement program, which means that you receive funds from the USDA after you’ve spent money on eligible expenses. It also requires applicants to match the value of funds requested from the USDA, with cash or in-kind contributions, such as the value of your labor and the commodity value of your agricultural product. Don’t let matching requirements deter you, though. There are nuances within these rules, making it helpful to talk with a consultant (see resources at bottom of this post) about what applies for your specific application. Many farms are able to match most of the value of the grant with a mix of in-kind labor and agricultural products, contributing a small percentage of the match in cash.
There are two versions of the VAPG that you can apply for, both of which can be used for marketing expenses: Planning and Working Capital. The Planning version allows for up to $75k in funding and the Working Capital version provides up to $250k. Read below for an introduction into these two versions of the VAPG!
Value Added Producer Grant: Planning Grant
A planning grant funds exactly what it sounds like - activities that assist in planning economic ventures. The National Sustainable Agriculture Coalition gives these two examples: the development of business and marketing plans and feasibility studies needed to establish viable marketing opportunities for value-added products.
Value Added Producer Grant: Working Capital Grant
Rather than funding the planning process, the working capital grant funds the operations side of a new venture. Think more processing and marketing expenses, less laying the groundwork expenses. Keep in mind that these funds do not cover equipment costs, though. Examples of what are covered include processing costs, marketing and advertising expenses, and some inventory and salary expenses.
There are two types of working capital applications with different requirements for each: market expansion and emerging market. Market expansion applications support expansion activities for applicants with existing products that have been in the market for two years or more; this category is open to independent producers only. Emerging market applications require new products (in the marketplace for less than two years) or entry into new geographic or demographic markets; any applicant type can apply in this category, but it is required for cooperatives, agricultural producer groups, and majority-controlled producer based businesses.
When applying for over $50,000 in the market expansion category, a business plan completed by a 3rd party consultant will need to accompany your grant application. If you plan on applying for more than $50,000 in the emerging market category, you are also required to have a feasibility study completed by a 3rd party consultant. Don’t let that deter you from asking for a larger budget, though! There are resources available to help you. Your local Rural Development Office can point you in the right direction.
The VAPG is a good one to consider in the future by visiting the USDA website, where you’ll find the deadline for the year you’re applying once it’s been released.
We have had more than one client win the VAPG and it’s been a huge asset in their ability to get needed ventures off the ground using marketing. If you’re interested in applying for the VAPG in the future, scroll to the bottom of this page to find resources to get you started. And don’t forget to check out Part 2 of this series, where you’ll find an example of someone who was successful in receiving the VAPG.
Farmer’s Market Promotion Program
The goal of the Farmer’s Market Promotion Program (FMPP) is to stimulate the health and availability of direct to consumer outlets - places where more than two farmers can sell through a common distribution channel. Such places include but aren’t limited to farmers markets, CSAs, roadside stands, and internet sales.
While individual producers are eligible for the VAPG, the FMPP is only eligible for groups. Examples are:
Agricultural businesses and cooperatives
CSA networks and associations
Food councils
Economic development corporations
Local governments
Nonprofit and public benefit corporations
Producer networks or associations
Regional farmer’s market authorities
Tribal governments
The key for the FMPP is being able to demonstrate that individual farmers are beneficiaries of the work being proposed and that it promotes direct to consumer activities.
There is no match requirement for the FMPP, and the amount available to be awarded for each recipient is $50-$500k. As with the VAPG, there are also two versions of the FMPP that you can apply for.
Farmer’s Market Promotion Program: Capacity Building Grant
The capacity building grant encompasses activities that are in the planning stage of a new venture. It can help you lay the foundation for being able to take action. This is a great option for a group who hasn’t started their venture yet and need help with funding the extensive planning process involved in ensuring their venture will be successful.
Farmer’s Market Promotion Program: Community Development, Training, and Technical Assistance
This version of the FMPP is geared more towards groups who have already started their venture and have a clear idea of where they want to head. These are groups who are out of the planning stage and are now in need of assistance with expanding their positive impact, whether that’s through reaching more customers through marketing, training for those involved, or maintaining profitable operations, for example.
The fantastic thing about the FMPP is that it supports a variety of activities that are involved in direct to consumer ventures, including marketing. The National Sustainable Agriculture Coalition tells us that in addition to marketing and sales expenses, it also funds market startup, operation, infrastructure, training and education, outreach, market analysis and planning, customer and producer surveys, vendor and customer recruitment, and new venue establishment.
We can help!
If you’re applying for a grant that supports marketing efforts and you plan on hiring a marketing agency to help, having a letter of support from the agency is a great idea. Which is where we come in! We offer a free Letter of Support with ballpark pricing as well as a more comprehensive VAPG Marketing Support Package that includes calls with our expert teammates and a customized Mini Marketing Plan.
You can do it!
The USDA’s grant programs are there to support you in being able to do the great work you’re already doing. Making local food more accessible and available is vital for our country’s food systems. It doesn’t come without its challenges though, and that’s why it’s beneficial to take advantage of the grant programs available.
Applying for a USDA grant may seem overwhelming at first, but the right tools, information, and partnerships can make what feels impossible, possible. You can do it!
Check out our free farm grant resources or continue on to Part 2 of this series, where you’ll learn about individuals who have been successful in receiving a USDA grant along with useful tips for getting through the application process!
